tv BBC Business Live BBC News January 12, 2017 8:30am-9:01am GMT
‘ but cold, but mr fr," ‘ur will be sunny but cold, feeling particular cold down those north sea coasts given we could have some severe gales. this is business live from bbc news with sally bundock and aaron heslehurst. the director of the us office of government ethics has sharply criticised donald trump's plan to hand his global business empire to his sons before he becomes president of the world's biggest economy — in just eight days' time. live from london, that's our top story on thursday 12th january. from boardroom chief to commander—in—chief. trump hands control of his business empire to his sons. but ethical questions will remain for america's richest—ever president. plus — "i apologize to the south korean people". samsung boss jay y lee is questioned in a growing corruption scandal. markets in europe are all headed
lower again today. we talk you through the change in sentiment. can artificial intelligence predicts the best way to reach you as a consumer? we will speak to an advertising expert who thinks the answer is yes. cinema chains are reporting record ticket sales. is it a movie for you in the comfort of your own home, or do you still love going to the pictures? what draws you to the big screen? let us know using this hashtag. welcome to the programme. if you're wondering where is the person playing the piano in the cinema, you are definitely showing your age! we are in the us, where president—elect donald trump has been dismissing claims russia holds compromising material on him, calling it "fa ke news".
the row has even threatened to overshadow controversy over mr trump's business dealings, and concerns he will face a major conflict of interest once in the white house. on wednesday he said he'd hold onto his business empire, but hand "complete control" to his two eldest sons, donald jr and eric. but in the last few hours, the head of us office of government ethics has sharply criticised the plan, saying it does not match the "standards" of us presidents over the last a0 years. so will it be enough to silence the critics? the trump organization is not listed on the stock market, so it doesn't publish financial information. but according to private company research firm privco, the real estate, hotel and leisure empire made revenues of $9.5 billion in 2014. according to bloomberg, as well as billions in assets, the organisation has some $600 million of debt, owed to scores of financial institutions. another potential
source of conflict. and it employs an estimated 22,000 people in more than 20 countries, raising questions over foreign policy. but mr trump's lawyer says "no new foreign deals will be made whatsoever" while he is president. she says over 30 pending deals have been cancelled, instantly losing the family millions of dollars. and an ethics advisor will be appointed to approve all dealings that might raise conflict of interest concerns, or be seen to exploit the office of the presidency. tom packer, fellow at rothermere american institute, joins us now. great to have you with us. thank you for coming in. the leader of america's ethics pretty much slams
the trump plans to split from the business. the donald trump go far enough? obviously all positions are somewhat politicised in the united states. one wouldn't necessarily ta ke states. one wouldn't necessarily take that as handed down on tablets from mount sinai. the fact is, the usual procedures for most senior american roles would require more of a separation than mr trump has done so a separation than mr trump has done so far. with all of this, this is unprecedented, right? having a billionaire, if you will, in the office. we've had millionaire presidents but, somebody like that he's got so much business interest... it is unprecedented in the history of modern conflicts of interest legislation. jfk's family would arguably be even richer than donald trump, that was the early 19605 donald trump, that was the early 1960s and people didn't worry about that at the time. the last few
presidents have been solid millionaires, not billionaires. the sheer level of economic interest has been much less. what happens now? the head of the ethics committee is saying this isn't going far enough. there's a lot of criticism about his decision in the press, he's not going to change that, is he?” decision in the press, he's not going to change that, is he? i think in the short term they will follow but they were talking about. i would be interested to see who this ethics adviser is, how dependent they are on mrtrump, how adviser is, how dependent they are on mr trump, how much experience they have. it might become a controversial issue. he might come under more pressure. particularly as he fell out with congress, particularly if he fell out with both parties in congress, he might find some legislation coming along that makes this harder. at the moment i don't see what they are going to use to force him to go further than he already has. for those of us watching yesterday, waiting to see more meat on the bones in terms of economic policies from trump, very disappointed, right? the policy was overshadowed
by the controversies. one thing to look caveat is paul ryan, speak of the house. what is he going to stop prioritising? never underestimate how much it is congress driving the agenda economically. i suspect they will be prioritising tax reform, changing obamacare. i think paul ryan will be more important over the next few months in what dominates the headlines economically. thank you. shortly we will talk about impact on financial markets of that press c0 nfe re nce , impact on financial markets of that press conference, because it is still having reverberations around the world even today. now some of the world even today. now some of the other stories making the headlines around the world. austria's chancellor, christian kern, has said he'll ask the european union to let local employers hire austrians before other eu citizens, unless there are no suitable candidates. he said incomers from eastern europe were putting pressure on the jobs market. india's foreign minister has criticised online retail giant amazon after its canadian website was found to be selling doormats featuring the indian flag.
sushma swaraj tweeted that amazon should withdraw the "insulting" products, or else current visas for amazon officials would be rescinded. that india demands an amazon apology is actually on the biz website. also china and bitcoin. we were talking about bitcoin just last week. the best performing currency in the world, it was, hitting 1000 bucks. it's an online currency. but it doesn't exist, you know what i mean. the country's central bank said it wa nted the country's central bank said it wanted to investigate market
manipulation, money—laundering and unauthorised financing. this has sent the currency more 16% lower. virtual currency, that's what it is. now the defacto boss of samsung has been questioned by investigators in seoul. lee jae—yong isn't just any executive. tha nkfully thankfully the me that! he is heir to a powerful business dynasty, the grandson of the founder of samsung. he's already given evidence to politicians about the scandal, but this is the first time he's faced questioning as a suspect. stephen evans is in seoulfor us. lots of apologies, but not much said about the actual act, any wrongdoing, no admitting to doing things wrong. lots of apologies. it's that kind of classic apology, i'm very it's that kind of classic apology, i'm very sorry, for trusting people too much. in the case of jay
i'm very sorry, for trusting people too much. in the case ofjay y lee, for sending out a bad image. it's become a classic political apology where you don't admit any kind of wrong doing yourself. everybody in this scandal is saying, i've not broken the law, and the prosecutor is now fingering some very important collars indeed. including jay y lee, the heir apparent to samsung. his dad has been seriously ill for two yea rs, dad has been seriously ill for two years, now. he is the man at the top of samsung, and he could face serious criminal charges. the nub of this allegation, which they deny, is that samsung paid a lot of money to two companies controlled by the best friend of the president of the country. in return, the allegation is, samsung got the votes of the national pension fund to back a big change inside. that's the allegation, everybody is
apologising, everybody is denying wrongdoing. thank you very much. markets were reacting to that press conference from donald trump. the dollar falling for conference from donald trump. the dollarfalling for a conference from donald trump. the dollar falling for a second day. today, japanese stocks sliding. the yen getting stronger. the fact there was very scant detail on policy, not helping business leaders around the world. the losers are the drug makers worldwide, partly because of what he had to say. let's look at europe now. we've had more news out big retailers like tesco and marks and today. we've got gold advancing, or oil retreating. that's what's happening in general. a sentiment change on markets, it's all been about games going up and up. we'll talk some more in a moment about that. and michelle fleury has the details about what's ahead on wall street today.
the trump rally has pushed stocks to new highs. how enduring is it? we may soon find out. financial companies had been among the big beneficiaries. several of them turning their profit figures on friday. other companies are reporting ahead of that including delta airlines ‘s, scheduled to report its fourth—quarter results before the market open this thursday. wall street investors are looking for higher revenues but also higher costs, a trend that has been seen across higher costs, a trend that has been seen across the industry. meanwhile several federal reserve officials are also speaking this thursday, starting with janet gillen. she is talking to educators from across the country. several of the regional fed presidents will also be talking about us economic outlook, including james bullitt. joining us isjessica ground, uk equities fund manager at schroders. great to have you. let's start with
the conference yesterday from trump. disappointed for those of us looking for more economic policy. what was interesting is he was still only eight days away from becoming president, and will still prepared to stand there globally and publicly, pretty much picking on sectors and actually naming certain corporations he wasn't happy with. it felt like a continuation of the election campaign in some ways. light on policy. the pharma sector, drug pricing has been a hot issue now for a while following the back of a number of significant increases. the drugs companies took a hit after that. unsurprisingly, the american market is an incredibly profitable one.
it's the largest global health care market. he was pretty clear on looking at pricing and really expecting a better deal from the companies, so starting to come under pressure there. janet yellen and speaking later today. the head of the us federal reserve, sorry. she is talking and she is equally as not across stuff as we is talking and she is equally as not across stuff 3s we are is talking and she is equally as not across stuff as we are in terms of what he's going to do next. he's also been a reasonable critic of her. i think the focus she will keep it on will be the park for interest—rate rises in the us. that will really be what people are looking at. the dollar being the reserve currency and a feeling of how much does the fed feel they should be tightening, and over how long. are you going to come back and
take us through some of the papers, shortly. the dollar took a bit of a hit, too. down today for a second day ina hit, too. down today for a second day in a row. coming up, is artificial intelligence smart enough to predict your tastes as a consumer? you're watching business live from bbc news. if you are watching in the uk, there is no break which may come as a relief. we going to talk about the retail stories in the uk. it's a bumper day of retail results, with news from the likes of marks and spencer, john lewis, tesco, waitrose, debenham's and asos. after results from morrison's and sainsbury‘s this week, and disappointing results from next last week, we now have a good idea how our retailers did over christmas. theo leggett is in our business newsroom, and he's been crunching the numbers. quite a few out today to tell us their numbers over christmas. a lot of numbers up today and far too many
for me to go through one by one. let's look at some of the big ones to begin with. let's start with tesco. it took the last quarter of the year and the christmas period together, over that period, the year and the christmas period together, overthat period, its like—for—like sales rose 14%. not a bad performance although it tailed off a bit in the christmas week compared to last year. food sales did pretty well but what's interesting to me is that clothing sales were up 4.3%. you mentioned we had a trading statement from next last week. retailers like next have been struggling a bit but its statement showed a big increase in clothing sales. tesco's results look positive on the surface, but the markets don't seem that impressed, their shares are down this morning. moving on, let me show you this, this is what has happened to marks & spencer's share price this morning, up something
like 8% at the opening, they have tailed off little bit, but still up 396. tailed off little bit, but still up 3%. that looks like investors are going through the nitty—gritty of what they were saying. so what were they so pleased about first thing in they so pleased about first thing in the morning? sales were up for the group as a whole 5.9%, 4.3% if you strip out the effects of currency fluctuations. food sales again did very well, but also an increase in clothing sales, an area where marks & spencer has really suffered over the past few years. but something else i find very interesting, sales in its international stores were up 19%, a good form but don't forget that marks & spencer is in the process of closing a lot of its international stores. i know you love a good spike on your board there, amazing! you're watching business live, our top story: the director of the us office of government ethics
has criticised donald trump's plan to hand his global business empire to his sons, before his inauguration on 20th january. he is handing control of the company, not giving up the company himself. hanging on with all his might! a quick flash at the markets again, sally was explaining what was going on, a bit of red, we have had record after record on wall street and in london. advertising has always been an industry about embracing change and looking for new ways of selling things. advertisers have also always known a lot about us and the brands we like. but they'd like to know more, and now the industry is using artificial intelligence to predict our wants and desires. really, that is scary!
the7stars is one agency making use of this new direction. it's one of the uk's most successful and largest independent advertising companies, with clients that include virgin emi records, habitat and nintendo. jenny biggam is one of the big brains in the industry. she's co—founder of independent media agency the7stars. nice to see you, jenny! cani nice to see you, jenny! can ijust... just nice to see you, jenny! can i just... just researching nice to see you, jenny! can ijust... just researching and looking at some of the details, when you started, you just thought of doing stuff not normally, a bit radical? you got rid ofjob titles the whole holiday forms, your workers don't need to fill out forms, they just go workers don't need to fill out forms, theyjust go on holiday for as long as they want. really?! why did you go down that path? we set the agency up in 2005, and it was a
once—in—a—lifetime opportunity to set upa once—in—a—lifetime opportunity to set up a business of your own, you so set up a business of your own, you so you start with a blank piece of paper. one of the things we thought really ha rd paper. one of the things we thought really hard about was what kind of employer we wanted to be, how we could do things differently. so we put in place lots of different things about better come with our team, treating them as a team, not departments, not breaking things down into silos. the holiday form was something we started up when three orfour were was something we started up when three or four were sitting in the office, saying, we willjust tell each other when we will were going away. that is quite liberating, so we extended it as we brought in more. do your big-name clients not have a problem if you scoot off on holiday? the holiday thing works pretty much as it would anywhere
else, they will hand over their work toa else, they will hand over their work to a colleague. are not as easy as it sounds. the only thing we don't do is keep counting the numbers, thatis do is keep counting the numbers, that is what we take away. what is the longest amount of leave that an employee has ta ken? the longest amount of leave that an employee has taken? do you know, or do you not count? people, if they are going on a honeymoon or doing something big, they take a little bit longer. see you in six months! how difficult is it to remain independent in the world, the media world that we live in today? independent in the world, the media world that we live in today7m independent in the world, the media world that we live in today? it is less difficult now for us, when we first set up, it was more difficult, because we had challenges around how you by media when you do not have the scale to negotiate with, things like that, but we are now pretty established as a big independent agency, and you know, that is still quite different in the part of the industry that we work in, so creative agencies, there is a lot of
start—ups, a lot of innovation in that part of the market. talk us through this issue of artificial intelligence, to what extent it will help you help clients sell stock. yeah, so! help you help clients sell stock. yeah, so i suppose from our point of view, if someone has... you're been talking about retail, and if someone has bought a pair of shoes, it is important that we understand what motivated that purchase, why they picked that product, that brand, that retailer. in order to understand that, you have to unpick the whole communications channel. so cana i'd the whole communications channel. so can a i'd do that? a human being could never even get close, there would be no way of doing that, but an algorithm, particularly in digital communications, can start to unpick the effect of different limitations on that customer journey? we talk about al a lot in the field of technology, in the life
we lead, do you think this is the pa rt we lead, do you think this is the part that advertising will go down? it is really important because advertisers are demanding more accountability, to understand how millions of pounds are being spent and where they are getting the biggest fact, so when you are making biggest fact, so when you are making big decisions with other people's money, it is important to put in place every single technique that you can. fascinating! we have run out of time. if you could get at the visual intelligence together is more time on the programme, i will pay you for that! —— artificial intelligence. in a moment, we'll take a look through the business pages, but first here's a quick reminder of how to get in touch with us. a p pa re ntly apparently more of us are going to the cinema in quite some time, we have been asking why. the business life page is somewhere where you can stay a head with all the breaking news. —— business live.
get involved on the web page on the bbc website. we all got caught there, didn't we?! jessica is back, take us through the papers. we had a much—needed chat about robots, meps, politicians in europe voting on robots and whether a kill swa p voting on robots and whether a kill swap is required. you read that headline and think, what does that mean?! i think it is quite forward—looking of the european
parliament, recognising that there will be more robots working alongside humans, and it is trying to think ahead into how that might work, and things like protecting humans, in those types of environments. whether or not you can get the right answers, because things are changing so fast, that is the real question. but talking about 5 millionjobs being replaced by robots, this is a very real is you, and we are all going to start dealing with much more of that in the workplace. —— a very real issue. when we are talking about robots, this is manufacturing, because one expert said that robots will take jobs, but people will have whole new areas that we have not thought of at the moment. there are newjobs areas that we have not thought of at the moment. there are new jobs about working alongside robots, understanding robots, but in caring, robots potentially doing some of the
lifting and menial jobs robots potentially doing some of the lifting and menialjobs there. and yes, i think it will free people up to do differentjobs, but it is changing the skills. one cinema chain is reporting record ticket sales as it seeks more takeovers, thatis sales as it seeks more takeovers, that is in the telegraph, talking about cineworld, but this is a broader trend in the uk. bridget jones, jungle book, very popular. this is the wider trend of experiences, not things, we have reached peak stuff, and cinema is a great thing to go out and do. even though we have all this media, the advantages that you are not distracted. some viewers have said they just go distracted. some viewers have said theyjust go for distracted. some viewers have said they just go for the distracted. some viewers have said theyjust go for the popcorn! you buy popcorn at home! that is all from us for the day, thank you for your company, see you soon. hello, good morning. it is really
going to feel cold for all of us today, the weather more straightforward across more northern parts, very cold air here, winds blowing in more snow showers. we have a boundary between the cold and warm air here, and the rain will turn to sleet and snow. late morning, mostly snow across wales, the south—east, and further north the south—east, and further north the air is colder, a little bit brighter to the east of the pennines, but more wintry showers in the north—west of england and in northern ireland and scotland, these will be heavy. not many shows for the eastern side of scotland, more sunshine here, but there will be a cold wind across eastern areas, keeping the snow showers going. wet
weather sliding into the midlands, turning to sleet and snow in the afternoon, heading further into east anglia and the south. it will be quite heavy, feeling cold and the rain, and cold further north, where we have those stronger winds. as we head towards late afternoon, into the evening rush hour, the rain turning to sleet and snow, especially across east anglia and the south—east of england. there will be settling over the hills, but snow at lower levels too. as it clears away, it's tensai see very quickly in the south—east at all that wet weather. not just icy quickly in the south—east at all that wet weather. notjust icy here, but elsewhere across the uk, complicated by the wintry weather moving from the north into northern england, wales and the midlands by the end of the night. cold overnight, icy conditions, particular the treacherous with the sleet and snow moving through the midlands into east anglia and the
south—east for the morning rush hour. that doesn't last too long, then wintry showers around areas exposed to the strong northerly winds. for many, though, friday will be sunny but cold, feeling particularly cold down the north sea coasts, given that we could have severe gales here, and also some very big waves. things don't quite through the weekend, not as windy, still cold on saturday, wintry showers, turning more cloudy, a little bit of rain around, turning milder. hello, it's thursday, it's nine o'clock, i'm victoria derbyshire, welcome to the programme. a former british spy is now at the heart of the story about claims, ferociously rubbished by donald trump, that back in 2013 mr trump fraternised with prostitutes in a moscow hotel room. they looked at that nonsense that was released by, maybe the intelligence agencies, who knows, but maybe the intelligence agencies. meanwhile, america's intelligence chief has told mr trump he doesn't